CPF Withdrawal Limit (WL) for 30-60 year lease – House for sale Singapore
The maximum amount of CPF that can be used for the property is set at a level that covers the estimated depreciated value of the private property when the youngest eligible member using CPF for the private property reaches the CPF withdrawal age of 55 years. This is to ensure prudent use of members’ CPF savings towards the purchase of private properties with short remaining lease. House for sale Singapore.
An example of how the maximum amount is determined is shown below. House for sale Singapore.
Example
A 35 year old member buys a private property with 50 years of lease remaining. When the member turns 55 years old, the property will have 30 years of lease remaining.
The maximum amount of CPF that he can use is 30/50 = 0.6 (or 60%) of the lower of the purchase price or value of the private property.
If you are buying the private property with other co-owners, the age of the youngest co-owner (who is eligible to use CPF) will be used to determine the maximum amount of CPF that may be used for the property. House for sale Singapore.
Example:
A, B and C are buying a private property with 50 years of lease remaining. A is 35 years old, B is 30 years old, and C is 25 years old.
In this case, C is not allowed to use his CPF savings for the property as the remaining lease of 50 years will not last him till 80 years. Only A and B can use their CPF for the property. As B is the younger of the two, B’s age and the remaining lease of the property will be used to determine the maximum total amount of CPF that A and B may use. When B is 55 years old, the remaining lease of the property will be 25 years. Hence, the maximum amount of CPF that A and B may use is 25/50 (or 50%) of the lower of the purchase price or the value of the property at the time of purchase. House for sale Singapore.
Alternatively, to calculate the maximum amount of CPF that can be withdrawn, you can use the table below to determine the percentage to be applied on the lower of the purchase price or the value of the property at the time of purchase.
• Age of youngest eligible owner using CPF at the time of purchase; and
• the remaining lease of the property at the time of purchase. House for sale Singapore.
Withdrawal Limit table
Source: CPF website
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